Democrats' tax cut deal would be based on state hitting revenue figures, sources say

Tony Kurdzuk/The Star-LedgerView from the back of the Assembly chamber during Gov. Christie's budget speech in February. New details have emerged on the Democrat's tax cut plan.

TRENTON — Gov. Chris Christie may get a tax cut, but he'll have to earn it.

The framework of a deal hammered out by Democrats includes a tax cut, but only if certain economic conditions are met, such as Christie hitting his own revenue targets, according to two sources who are familiar with the plans but not authorized to speak about it publicly.

The deal will be presented to party members by Senate President Stephen Sweeney (D-Gloucester) and Assembly Speaker Sheila Oliver (D-Essex) in separate closed-door sessions today. The plan is subject to change based on input from members, sources say.

Christie did not answer questions about the proposed tax plan emerging from the Legislature during a news conference this morning. Rather, he stuck to his intended message that there were 17,600 new jobs created in the state last month, which he said was the highest in seven years.

“The time for excuses is over," he said. "They cannot deny the facts -- .25 percent of every job that was created in the country was created in this state. I don’t know what we can do to convince these Democrats who root against our state for their own partisan purposes to stop.”

"I will not negotiate a budget with the state Legislature unless they cut your taxes," Christie told about 650 gathered in Galloway Township at the latest in a string of town hall meetings aimed at pressuring the Democrats.

Competing tax cut plans, offered first by Christie and then by Democrats, have dominated this year's budget discussions, but an unexpected drop in revenue has cast doubt on whether the state can afford it. Christie has emphatically said yes, though Democrats — many of whom have played along — have been skeptical.

Estimated revenue shortfalls for the state range from about $705 million, which the Christie administration has projected, to $1.4 billion offered by the nonpartisan Office of Legislative Services through the end of the 2013 fiscal year.

Democrats are relying on Christie's revenue projections this year instead of less-optimistic estimates offered by OLS, sources say.

Last year, Democrats used their own figures and approved a budget that exceeded Christie’s revenue estimates, only to have him veto about a billion dollars in expenditures, largely for struggling cities and social programs.

What’s more, the governor has the authority to certify the revenue estimates, and the sources said Democrats are convinced the public will hold him responsible if the state runs short of money.

Last month, the Christie administration said it expected to bring in $32.02 billion in revenue for the next fiscal year, which includes about $500 million in reserve funds.